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One Risk of a Cost Leadership Strategy Is That the Technology

question 41

True/False

One risk of a cost leadership strategy is that the technology for production or of products may change.


Definitions:

Parent Company

A corporation that owns a majority of the shares of another company, thus controlling management and operations.

Controlled Company

A company in which a majority of its stock is owned or its operations are controlled by another entity.

Investee Company

A company in which another company (the investor) holds a significant stake but does not have controlling interest.

Parent Company

An entity that owns enough voting stock in another corporation to control its management and operations.

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